There is no current evidence that free cash machines are under threat. There are over 32,000 free cash machines in the UK and 96% of cash withdrawals are free. There has in fact been a 2% rise in the number of free machines at non-branch locations over the past year. There has been a small offsetting fall in the number of machines in bank and building society branches. The number of charging cash machines has risen. The vast majority of new charging machines are in locations that previously had no cash machine.
ATMs |
Sep-04 |
Sep-05 |
Difference |
% |
Free Branch |
19,148 |
18,777 |
- 371 |
-1.9% |
Free Remote |
13,315 |
13,578 |
+ 263 |
+2.0% |
Free Total |
32,463 |
32,355 |
- 108 |
-0.3% |
Charging |
20,715 |
23,931 |
+ 3,216 |
+15.5% |
Total |
53,178 |
56,286 |
+ 3,108 |
+5.8% |
Both the Treasury Select Committee and the Government accepted that charging cash machines are a legitimate business model, increasing access to cash and helping to sustain small businesses*.
Over the past year LINK and its Members have taken a range of actions to ensure full transparency of cash machine charges.
Rules on transparency of charges were tightened on 1 July 2005. The amount of any charge must be displayed on the ATM screen. The customer must confirm acceptance of any charge before completing a cash withdrawal. LINK is currently surveying compliance with these rules. Members of LINK have agreed that penalties will be payable by those found not to be compliant.
When Members considered a proposal on red and green signs in May 2005, they chose to implement the current rules. Many banks have already invested considerable sums in labelling their cash machines as free in a way that is prominent given their own particular brand colours. LINK and its Members continue to review the effectiveness of these rules and whether alternative solutions would be more, or less effective.
LINK publishes on its website information on the number of free and charging cash machines as well as data on trends in the number of transactions that are charged. See www.link.co.uk for details.
(*House of Commons Treasury Committee, Cash Machine Charges, Fifth Report of Sessions 2004-2005. HC 191 page 56 para3)
Background